Talent management strategies for generation y and competitive advantage of commercial banks in Kenya
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Date
2016-06
Authors
Gitonga, Angelica Gatiiria
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
An organisation’s focus is to provide best quality at the lowest cost using its top talent which
makes the difference between success and failure. They are therefore required to identify the
impact of the values and work preferences of the young generation of workers in order to
employ, develop, retain and prepare staff for future leadership. Talent Management strategies
such as Human Resource Planning, Human Resource Procurement, Human Resource Retention
and Human Resource Development are vital to enable the organization retain the talents required
to gain a competitive advantage. The theory of the Resource-Based View (RBV) points out that a
firm gains competitive advantage through a combination of its unique resources, competencies
and capabilities. The study on talent management strategies for generation Y and the
competitive advantage of commercial banks in Kenya sought to understand if leveraging on their
talents puts the bank in a better competitive position. The research objectives were to establish
the relationship between talent management strategies namely; human resource planning, human
resource procurement, human resource development and human resource retention as applied to
generation Y employees, with competitive advantage of the commercial banks in Kenya. The
other objective was to determine whether introduction of the mediating variable of human
resource capability had any effect on the relationship between talent management strategies for
generation Y and the bank’s competitive advantage. To achieve these objectives, the study
employed descriptive survey research design to gain evidence with regards to the present status
of the phenomena. The target population of the study comprised of 43 Commercial Banks in
Kenya and the given unit of observation was the departments in each bank. The study identified
six departments in every bank namely human resources, finance, marketing, credit, treasury and
Audit. Primary data was collected through a semi-structured questionnaire and the method of
administration was drop-and-pick later. Quantitative data was collected and analysed using
inferential and descriptive statistics. The results of the findings were presented in tables. The
study also analysed qualitative data on the basis of common themes and presented it in narrative
forms. With the analysis of the data collected on all the variables and the testing of hypotheses,
the study revealed that Talent Management Strategies contributed a fairly good extent to
competitive advantage of Commercial Banks in Kenya with a percentage level of 55.3% (Ṝ2 =
.553). An inclusion of a mediating variable of HR Capability to determine its relationship with
the Competitive Advantage of the Commercial Banks presented a percentage level of 39.8% (Ṝ2
= .398). The study went further to determine whether the mediating variable of HR Capability
had any effect on the relationship between the independent variables and the dependent variable.
Multiple regression models were used to predict the relationship which proved to be true with a
positive percentage of 55.8% (Ṝ2=0.558), an increase in the value of Ṝ2 by 0.005. This indicates
that the mediating variable has a statistically significant effect on the relationship between talent
management strategies and the competitive advantage, hence concluding that HR Capability
derived from application of talent management strategies has a partial mediating effect on the
relationship between talent management strategies for generation Y and competitive advantage
of commercial banks in Kenya. Thus the study notes that the strength of the relationship
between talent management strategies generation Y depends on the level of HR Capability
arising from the strategies. The study recommends that Commercial Banks in Kenya could
consider Talent Management Strategies for Generation Y when making organisational policies.
They could also embrace best HR practices that contribute to the management of human capital
in order for them to realise a competitive Advantage.
Description
A thesis submitted in partial fulfillment of the requirement for the Award of The Degree of Master of Science in human resource management in the school of business of Kenyatta University, June 2016